According to a GigaOM report, over one-third of the top grossing apps/games in the App Store are FREE, and better yet, termed “Freemium” as it employs In-App Purchases to generate its revenue.
A look at the top-grossing iPhone apps today finds 34 of the top 100 apps are free, but make their money through in-app purchases of mostly virtual currencies as well as other premium features.
Remco van den Elzen, CEO of analytics firm Distimo, said the following:
“We’re seeing more developers implement more in app-purchases especially with games,” he said. “Freemium Apps are also picking up significantly. A lot of developers realize it’s a successful model.”